Kabateck LLP Managing Partner Shant A. Karnikian was quoted in the Daily Journal discussing the California Department of Insurance’s investigation into State Farm’s handling of wildfire claims from the January Eaton and Palisades fires.
Karnikian discussed the significance of the state’s investigation and its potential impact on policyholders seeking fair compensation for wildfire damages. He emphasized the critical need for regulatory oversight, particularly in light of a recent appellate decision in the Gharibian case that made it more difficult for homeowners to collect on smoke and soot damage claims.
“Part of me worries these are just words, a political or PR move to calm people down,” Karnikian told the Daily Journal. “If the California Department of Insurance or Legislature does something here, it will be a much-needed course correction after Gharibian.”
The investigation comes amid widespread complaints from wildfire victims who say insurers are dragging their feet and underpaying claims. Some State Farm clients report the company is offering to pay only fractions of repair and cleaning costs for homes damaged by the fires.
Kabateck LLP is currently helping State Farm policyholders resolve their wildfire claims and has extensive experience in insurance bad faith litigation. Karnikian noted that while investigation findings may not be legally binding, they can be compelling evidence in front of juries during bad faith trials.
The Eaton and Palisades fires destroyed over 16,000 structures and led to 29 deaths, with insurance companies paying nearly $17 billion to policyholders as of May 12.
Read the full article in the Daily Journal here (subscription required).